TEHRAN: Preparations for Russia to provide Iran with a $1 billion loan have reportedly reached the final stage as part of growing economic cooperation between Moscow and Tehran. However, disagreements within the Iranian government over how the funds should be spent have temporarily delayed the transfer.
According to Iranian media reports and semi-official news agency Fars News, the mechanism for disbursing the $1 billion loan has already been finalized, and Moscow is ready to transfer the funds to Iran.
Russian officials are reportedly waiting for Tehran to provide the bank account details required to complete the transfer.
Iranian Ministries Divided Over Use of Funds
The delay is reportedly linked to a lack of agreement among Iranian government bodies over which sectors should receive the money.
According to reports, the Planning and Budget Organization wants the funds to be used for vehicle imports.
The Ministry of Petroleum has proposed spending the money on modern equipment and machinery for Iran’s oil and gas industries.
Meanwhile, the Ministry of Agriculture wants the financial package to be directed toward agricultural needs and imports of essential commodities.
First Installment of Larger Russian Loan Package
The $1 billion loan was first reported in June this year and is being described as the first installment of a much larger $20 billion Russian loan package intended for Iran.
However, with the dispute over spending priorities still unresolved, the Iranian government has yet to make a final decision on the allocation of the funds.
As a result, Tehran has not yet provided Russian authorities with the bank account details needed to transfer the $1 billion.
